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QUESTION PERIOD — Justice

Constitution Acts of 1867 and 1982

June 10, 2021


My question is for the government leader. There has been a fair amount of coverage recently about changes to the Constitution that the Province of Quebec intends to undertake.

On Monday, the Government of Alberta announced that it’s their intention to hold a referendum this October to consult Albertans on the removal of the equalization process from the Constitution.

It’s the first step in showing Canada and Canadians that Albertans are serious about this after years of discussing it and asking for meetings to make some meaningful change to the equalization process. This pandemic and the oil shock prices of the last number of years have highlighted the unfairness of the current program.

There will be a question put before Albertans in October. What would you say and what would your government say in defence of this question? And what would you say to Albertans about what this government has done over the last five years to address the concerns that Alberta has stated relentlessly and endlessly on this topic?

Hon. Marc Gold (Government Representative in the Senate) [ + ]

Thank you for the question. It is the prerogative of the Government of Alberta to survey and put questions to the population in that regard. The government will look with interest at the results of that.

The Government of Canada works regularly and is in contact regularly — the finance minister, in particular, with her counterparts — to address issues of the complex federal-provincial financial arrangements. Equalization is one important component. There are many other programs. Indeed, it is a subject that seeks to be addressed in an inquiry here in the chamber.

The Government of Canada has supported Albertans throughout this pandemic and continues to do so, as it does all Canadians. The Government of Canada is open and engaged in discussions with the provinces — Alberta, among others — to see what changes are appropriate to the equalization formula in the context of the broader fiscal arrangements that tie our country together.

If the referendum proposal passes the Alberta Legislature, would you anticipate that Canada would be active in providing information to Albertans about the wonders of equalization and how it is good for Alberta and therefore good for the country? If so, are you aware of any reaction to the referendum question from the government?

Senator Gold [ + ]

To the last part of your question, no, I am not aware of and have not been advised as to how the government reacted to that.

To describe the wonders of equalization may be saying too little and too much. The fact is that the equalization program is one of the centrepieces whereby we, as Canadians, express the fact that we are all in this together.

The original idea — which is still, I think, a principle worth nurturing — is that Canadians, regardless of where they live and regardless of the circumstances they find themselves in — urban, rural, rich and less wealthy provinces — have the right to a decent level of public services from their provincial governments, notwithstanding that provincial governments have made and continue to make decisions that have an enormous impact on their capacity to deliver public goods to their citizens, whether it is the level of income tax or the lack of an income tax, or whether it’s heightened spending on certain social services.

Be that as it may, the federal government, using the fruits of its plenary taxation power, redistributes funds to the provinces so that the provinces can better serve their citizens. The details are important and fundamental, but the principle is even more important. It is a principle that I think all Canadians ought to embrace, despite disagreements, perhaps, with how the formula may affect them — in particular, cycles of the economy or circumstances.

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